Bank of America analyst John Murphy has revised the price target for Lithia & Driveway (LAD, Financial), reducing it from $460 to $430 while maintaining a Buy rating for the stock. The revision comes as Q1 performance in production volumes and sales appears to be more robust than previously predicted, suggesting that the company's upcoming quarterly results might exceed initial expectations.
Despite these positive indicators, Murphy highlights significant concerns regarding the uncertainty surrounding tariffs. He notes that the ongoing discussions and potential implications of tariffs have yet to reach a resolution, keeping uncertainty levels high. This pervasive uncertainty has led Murphy to adjust valuation multiples by up to 1.0x across his coverage, reflecting a cautious stance as companies might have to retract or pause their future guidance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Lithia Motors Inc (LAD, Financial) is $426.08 with a high estimate of $500.00 and a low estimate of $310.00. The average target implies an upside of 50.12% from the current price of $283.82. More detailed estimate data can be found on the Lithia Motors Inc (LAD) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Lithia Motors Inc's (LAD, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Lithia Motors Inc (LAD, Financial) in one year is $392.44, suggesting a upside of 38.27% from the current price of $283.82. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Lithia Motors Inc (LAD) Summary page.
